Amid the decline of the US dollar, the AUD/USD pair is correcting around 0.6690.
The manufacturing activity index from American International Group Inc. (AIG) was 5.6 points in March, up from –6.4 points. The services sector indicator fell to 48.6 points from 50.7 points earlier, indicating ongoing problems in the industry. February's exports lost 3.0% and imports 9.0%, pushing the trade surplus to 13.870B Australian dollars from 11.688B Australian dollars.
As expected by most analysts, data on the US labor market did not allow the US dollar to move away from the year’s lows of 101.700 in the USD Index. Thus, nonfarm payrolls in March increased by 145.0K, lower than 261.0K a month earlier. The Institute for Supply Management (ISM) Purchasing Managers Index for the non-manufacturing sector fell to 51.2 points from 55.1 points earlier, which continued the negative trend that began in December 2021.
On the daily chart, the trading instrument is moving within the local ascending corridor with dynamic boundaries 0.6850–0.6650, preparing to continue the decline.
Technical indicators do not give a clear signal, working out a local correction: fast EMAs on the Alligator indicator are close to the signal line, and the AO histogram, keeping close to the transition level, is preparing to continue its decline.
Resistance levels: 0.6740, 0.6840. | Support levels: 0.6650, 0.6560.